Apparel retailer Urban Outfitters Inc reported a better-than-expected quarterly profit as comparable sales rose for the first time in a year, helped by a recovery at the company's namesake brand and strong demand for its Free People line of clothes.

The company's shares were up 3 percent in after-hours trading on Monday.

The Philadelphia-based company has been overhauling stores and merchandise to fight slumping sales at its Urban Outfitters brand, and controlling inventories to cut down on discounts at its Anthropologie and Free People brands.

Total comparable sales rose 6 percent in the fourth quarter ended Jan. 31, with same-store sales increasing 18 percent increase at the company's Free People brand and 4 percent at Urban Outfitters.

Sales were continuing to rise in the current quarter, Chief Executive Richard Hayne said in a statement.

The company's net profit fell to $80.3 million in the fourth quarter from $88.7 million a year earlier.

Earnings per share, however, rose to 60 cents from 59 cents as the company had fewer outstanding shares by the end of the quarter. Analysts on average had expected a profit of 58 cents per share, according to Thomson Reuters I/B/E/S.

Revenue rose 11.6 percent to $1.01 billion.

Urban Outfitters' stock was up 3 percent at $40.70 in extended trading.

$1 = £0.66